Pak PM's Attempt For Afghan Fund Faces Backlashes Over Fears Of Sanctions

This is the first time the State Bank of Pakistan has stood against the government's relief fund plan for Afghanistan since legislation was tabled towards making it more independent, said a report.

The Imran Khan government's recent bid to raise funds for the new rulers in Kabul has been shot down by the State Bank of Pakistan (SBP) amid fears that financing of the Taliban regime could invite international sanctions, according to a media report.

Pakistan's Finance Ministry has been advised by the SBP against domestic and foreign donations to the government of Afghanistan Relief Fund that funnelling funds to the Afghan government without involving "international organizations of repute" could result in sanctions from the Financial Action Task Force (FATF), an international anti-money laundering and terror finance watchdog, reported Asia Times.

FATF is set to review Pakistan's performance on various metrics next month. Notably, Pakistan has been on the Paris-based watchdog's "grey list" since June 2018. So far, two key FATF action items have not been met by Pakistan which are necessary to get the country removed from the grey list. It includes the prosecution and confiscation of assets of UN-designated terrorists.

This is the first time that Pakistan's autonomous central bank SBP has stood against the government's relief fund plan since legislation was tabled towards making it more independent, said Asia Times.